Quarterly report pursuant to Section 13 or 15(d)

Contract Liabilities

v3.20.2
Contract Liabilities
 6 Months Ended
Jun. 27, 2020
Revenue from Contract with Customer [Abstract]  
Contract Liabilities [Text Block]
NOTE 4 : CONTRACT LIABILITIES
(In Millions) Jun 27, 2020 Dec 28, 2019
Prepaid supply agreements $ 1,644    $ 1,805   
Other 279    236   
Total contract liabilities $ 1,923    $ 2,041   
Contract liabilities are primarily related to prepayments received from customers on long-term prepaid supply agreements toward future NSG product delivery. The short-term portion of contract liabilities is reported on the Consolidated Condensed Balance Sheets within other accrued liabilities.
The following table shows the changes in contract liability balances relating to long-term prepaid supply agreements during the first six months of 2020:
(In Millions)
Prepaid supply agreements balance as of December 28, 2019 $ 1,805   
Prepayments utilized (161)  
Prepaid supply agreements balance as of June 27, 2020 $ 1,644   
During the second quarter of 2020, we issued a contract termination notification for breach to our largest prepaid supply customer with a $1.6 billion contract liability balance. The timing and amount of future anticipated revenue, or reversal of any contract liability balance, resulting from contract termination may vary due to ongoing customer negotiations.